Section 226D Sections 226B and 226C: supplementaryF1

A resolution approving F2a payment for the purposes of section 226B(1)(b) or 226C(1)(b) must not be passed unless a memorandum setting out particulars of the proposed payment F3... (including its amount) is made available for inspection by the members of the company—

The memorandum must explain the ways in which the payment is inconsistent with the approved directors’ remuneration policy (within the meaning of the section in question).

The company must ensure that the memorandum is made available on the company's website from the first day on which the memorandum is made available for inspection under subsection (1) until its next accounts meeting.

Failure to comply with subsection (3) does not affect the validity of the meeting at which a resolution is passed approving F5a payment to which the memorandum relates or the validity of anything done at the meeting.

Nothing in section 226B or 226C authorises the making of a remuneration payment or (as the case may be) a payment for loss of office in contravention of the articles of the company concerned.

Nothing in section 226B or 226C applies in relation to a remuneration payment or (as the case may be) a payment for loss of office made to a person who is, or is to be or has been, a director of a quoted company F6... before the earlier of—

In this section the “company's website” is the website on which the company makes material available under section 430.